## [# ETF Zoo: Why Rebalancing Killed the ARK Star](/sections/podcasts/etf-zoo-why-rebalancing-killed-ark-star)
# ETF Zoo: Why Rebalancing Killed the ARK Star
Is rebalancing killing your gains? The ETF Zoo crew dives into Cathie Wood’s ARK strategy, hyper-growth tech inflows, the wildest new corners of the market, and why ETFs are officially eating the market.
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[By ETF Zoo Podcast](/authors/etf-zoo-podcast)
May 22, 2026
Edited by: ETF.com Staff
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In this episode of the *ETF Zoo*, Dave Nadig, President & Director of Research at ETF.com, talks with Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence and Todd Sohn, Senior ETF & Technical Strategist, Strategas Securities. The crew talks current ETF flows, including blockbuster flows into the [**Roundhill Memory ETF (DRAM)**](https://www.etf.com/DRAM), offers their perspectives on ARK Invest and Cathie Wood’s active management style, movement in Treasury yields, and more.
You can also find this conversation on [**Spotify**](https://open.spotify.com/episode/37Qoca6auvOLP7opcGPkxf?si=f20c1b5d4e404afa), [**Apple Podcasts**](https://podcasts.apple.com/us/podcast/why-rebalancing-killed-the-ark-star/id1852786914?i=1000769117634), or over on our [**YouTube channel**](https://youtu.be/EUIDiD8xCPM).
As always, the episode opens with a discussion about the ongoing, staggering pace of recent ETF flows. Setting aside a brief period of restraint in March, equity inflows have consistently hit over $5 billion to $7 billion per day. The Zoo crew this week noted that the massive influx is being heavily driven by legacy asset managers and mutual funds slowly converting their business models into ETFs. Interestingly, despite major drawdowns, total cumulative flows into Bitcoin ETFs remain incredibly sticky at around $57 to $58 billion, showcasing strong long-term holder conviction.
Beneath the broader market surface, capital is overwhelmingly being vacuumed into technology and artificial intelligence still. The crew highlighted the continued flows into the [**Roundhill Memory ETF (DRAM)**](https://www.etf.com/DRAM), which shattered non-crypto records by reaching $10 billion in assets in just over six weeks. This specific interest underscores an investor appetite for thematic pick and shovel plays, with a specific focus on capacity-constrained memory and hardware infrastructure necessary to power generative AI. While safer alternatives like Vanguard’s new target bond maturity ETFs are quietly growing in the background, high-beta tech innovation remains the dominant market force.
A significant portion of the conversation focused on a recent critique of Cathie Wood and ARK Invest. Balchunas offered a nuanced defense, arguing that while Wood boasts an exceptional eye for early-stage disruption (e.g., Nvidia, Tesla, Bitcoin), her performance suffers due to its rebalancing strategy. By consistently trimming her skyrocketing winners to fund underperforming laggards, she severely capped her long-term returns.Roy countered by emphasizing the fund's massive drawdowns and overall underperformance relative to the S&P 500. However, the group agreed that ARK's assets remain remarkably sticky because traders utilize her high-beta funds as a tactical vehicle to express extreme growth sentiment.
The episode concluded with a look at eccentric market updates and product filings. Looking forward to the highly anticipated SpaceX IPO, the crew expressed general skepticism about navigating the ultra-volatile 15-day window before its eventual index inclusion. In fixed income, Roy discussed the 30-year yield hitting its highest point since 2007, pointing out how the massive AI narrative has largely caused equities to shrug off bond market pressures. Discussion wrapped with a look at South Korean funeral homes investing in leveraged U.S. ETFs, as well as Truth Social pulling out of bitcoin ETFs.
Find out more about this episode’s guests:
Eric Balchunas and Bloomberg Intelligence: [**Bloomberg Intelligence**](https://professional.bloomberg.com/products/bloomberg-terminal/research/bloomberg-intelligence/), Eric on [**Twitter**](https://x.com/EricBalchunas)
Todd Sohn and Strategas: [**strategasasset.com**](https://www.strategasasset.com/), Todd on [**LinkedIn**](https://www.linkedin.com/in/toddsohn/)
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[ ETF Zoo Podcast ](/authors/etf-zoo-podcast)
Welcome to ETF Zoo, the podcast where we check into recent happenings in the wild world of ETFs. Hosts Dave Nadig, President and Director of Research… [View Bio](/authors/etf-zoo-podcast)
Related Topics [Technology](http://www.etf.com/topics/technology)
[ARK](http://www.etf.com/topics/ark)
[Leveraged](http://www.etf.com/topics/leveraged)
[Treasury](http://www.etf.com/topics/treasury)
[Equity](http://www.etf.com/topics/equity)